please answer all questions
A5% annual coupon bond with face value equal to $1,000 and 7 years of maturity remaining, is selling in the bond market for $1,020. What is the required rate of return of the marginal investor in this bond? In other words, what is the YTM? Show your work (though it can simply be calculator steps). Consider the following two bonds: A and B, both 7% (annual) coupon bonds with Face Value = $1,000. Bond A matures in 3 years and bond B matures in 8 years. Investors have the same required return for either bond A or B. Answer the following multiple choice question: Given a sudden decline in bond investors' required returns... a) The percentage change in bond A's price exceeds the percentage change in bond B's price b) The percentage change in bond B's price exceeds the percentage change in bond A's price c) The percentage change in bond A's price is the same as the percentage change in bond B's price d) None of the above Feel free to use numerical examples to help you think through to the proper answer. You may show your work below if you choose to do so. Consider the following two bonds, A and B. Bond A is a 7% (annual) coupon bonds with Face Value = $1,000. Bond B is a zero coupon bond. Both Bonds A and B mature in 5 years. Investors have the same required return for either Bond A or B. Answer the following multiple choice question: Given a sudden decline in bond investors' required returns... a) The percentage change in bond A's price exceeds the percentage change in bond B's price b) The percentage change in bond B's price exceeds the percentage change in bond A's price c) The percentage change in bond A's price is the same as the percentage change in bond B's price d) None of the above Feel free to use numerical examples to help you think through to the proper answer. You may show your work below if you choose to do so. Optional Explain in words, the logic behind your answer to the above question. Be sure you use terms such as "price risk" and "reinvestment rate risk